WO/BC/19/5 – WO/PC/9/5
page 1
WIPO / / EWO/BC/19/5 – WO/PC/9/5
ORIGINAL: English
DATE: June5, 1998
WORLD INTELLECTUAL PROPERTY ORGANIZATION
GENEVA
budget COMMITTEE
Nineteenth Session
Geneva, June 4 and 5, 1998
PREMISES COMMITTEE
Ninth Session
Geneva, June 4 and 5, 1998
Report
adopted by the two Committees
1.The nineteenth session of the WIPO Budget Committee and the ninth session of the WIPO Premises Committee, hereinafter referred to as “the two Committees,” were held jointly at the Headquarters of WIPO on June4 and 5, 1998.
2.The members of the Budget Committee are the following States: Bulgaria, Canada, Chile, China, Ecuador, Egypt, France, Germany, Hungary, India, Jamaica, Japan, Mexico, Morocco, Netherlands, Norway, Pakistan, Philippines, Republic of Korea, Russian Federation, Senegal, Slovakia, South Africa, Switzerland (ex officio), United Kingdom, United States of America and Uzbekistan(27). The members of the Premises Committee are the following States: Algeria, China, Colombia, Croatia, France, Germany, India, Nigeria, Paraguay, Russian Federation, SriLanka, Switzerland and United States of America(13). The States members of the Budget Committee, of the Premises Committee or of the two Committees which were represented at the session were the following: Algeria, Bulgaria, Canada, Chile, China, Croatia, Ecuador, Egypt, France, Germany, Hungary, India, Jamaica, Japan, Morocco, Mexico, Nigeria, Norway, Netherlands, Philippines, Republic of Korea, Russian Federation, Senegal, Slovakia, South Africa, Sri Lanka, Switzerland, United Kingdom, United States of America(29). In addition, the following States members of WIPO but not members of the Budget Committee or the Premises Committee were represented by observers: Argentina, Bangladesh, Bhutan, Brazil, Burundi, Côte d’Ivoire, Gabon, Ghana, Indonesia, Italy, Kenya, Madagascar and Sudan(13). The list of participants is contained in Annex1 of this report.
3.Discussions were based on documents WO/BC/19/2WO/PC/9/2 (“Questions on Premises Raised by Certain Member States and Answers Prepared by the Secretariat”), WO/BC/19/3WO/PC/9/3 (“Acquisition of the ‘Steiner Lot’ or the Procter & Gamble Building”), and WO/BC/19/4WO/PC/9/4 (“Summary of Specific Premises-Related Issues”).
4.The Chairman of the joint session of the Budget and Premises Committees, Mr.Shigeki Sumi (Japan), opened the meeting and recalled that the current meeting had been requested by the WIPO General Assembly at its last meeting in March in order for the two Committees to take a decision on the purchase of the Steiner lot or the Procter & Gamble Building.
5.Before adopting the agenda, the Delegation of Chile underlined that it wished to ask some questions with a view to achieving clarity and transparency in organizational and procedural matters. The threequestions were the following: first, why didn’t the draft Agenda include an item entitled “Election of a Chairman and twoViceChairmen”; second, what rules of procedure are applied to the Budget and Premises Committees, and third, do the rules enable one to elect the outgoing Chairman and ViceChairmen for the period immediately after the closure of their functions. The Delegation of Chile asked these threequestions of the International Bureau because, in the last threeyears, all agendas had included an item “Election of the Chairman and twoViceChairmen,” except in 1996, when there was an express decision in the two Committees.
6.In response to the questions raised by the Delegation of Chile, the Director General emphasized that the spirit of transparency would always continue in this Organization. The only difference between this session and earlier sessions of the Budget and Premises Committees was that it was considered that, between the previous session of the two Committees and this session, there was still unfinished business. This was the justification why the same Chairperson and two ViceChairpersons were continued, because it was felt that the present session of the two Committees was a continuation of the earlier session held a couple of months ago. Otherwise the argument of the Delegation of Chile was perfectly valid, and if we applied strictly the rules and procedures, we should have a new team of a Chairperson and twoVice-Chairpersons. The matter was not an argument on the basis of the rules and procedures, but that it was felt, based on consultations with some of the members of the two Committees, that it would be good for the continuity of the agendas of the sessions to have the same team of people. It was in this spirit that the continuity of the same team would be required, simply because the business in the previous agenda was not yet finished. The Director General emphasized that if the two Committees felt that the International Bureau’s interpretation was wrong, the question of whether or not to elect a new Chairperson and two Vice-Chairpersons was of course entirely in the hands of the two Committees.
7.The Delegation of Chile thanked the Director General for the explanation, but said that GRULAC had not been consulted, nor had the Coordinator of GRULAC brought this topic to the group, nor had the Delegation of Chile been consulted on the matter. The Delegation of Chile requested that in the future the International Bureau should follow the rules of procedure strictly, and that there should not be any interpretation of standards as to whether something is appropriate or not because the Member States have to decide that. So if the rules required a particular thing, then the International Bureau had in fact to follow it.
8.The Agenda contained in document WO/BC/19/1WO/PC/9/1 was adopted.
9.The Director General recalled that the General Assembly in March 1998 authorized him to explore with the owners of the Procter & Gamble Building and the Steiner lot the best price at which these premises might be acquired by WIPO. To fulfill that mandate, and in order for the joint session of the Budget and Premises Committees to take a decision, the Secretariat had had intensive consultations with those twofirms, and the results of these consultations were contained in document WO/BC/19/3WO/PC/9/3. The Director General highlighted that the Steiner firm gave a final, definitive, unconditional offer at a price of 13.5million Swiss francs for the adjoining lot, which had been reduced from the initial offer of 14.9million Swiss francs. The valuations of the Steiner lot made by the twobanks of WIPO, namely the Swiss Bank Corporation and Crédit Suisse, amounted to 9.9 and 16.5million Swiss francs, respectively. The Secretariat considered that the unconditional price of 13.5million Swiss francs offered by the Steiner firm, being in the middle of the range of these valuations, was reasonable. The situation concerning the Procter & Gamble Building remained unchanged, with the selling price remaining at its original amount of 100million Swiss francs. Valuations made by twoindependent consultants on that building gave amounts of 62 and 69.4million Swiss francs, respectively, so there was a considerable distance between those evaluations and the price asked by the Procter & Gamble firm. The Director General noted the Secretariat had been requested by several delegations to provide detailed information and documentation, and there had been extensive consultations with several member States; the material provided is reflected in document WO/BC/19/2WO/PC/9/2. Document WO/BC/19/4WO/PC/9/4 summarizes the need for additional working places even once the WMO Building is renovated and extended. The Director General thus proposed that WIPO proceed with the acquisition of the Steiner lot at a price of 13.5million Swiss francs, to be drawn from the Special Reserve Fund for Additional Premises and Computerization, and that informal consultations be initiated immediately with the Chairperson of the Budget and Premises Committees and the two Vice-Chairpersons, the Chairperson of the General Assembly and the two Vice-Chairpersons, and the Coordinators of the various regional groups, in order to develop concrete proposals on what facilities should be built on the Steiner lot, including, in particular, the question of larger conference facilities and additional parking facilities including parking for delegates.
10.The Delegation of the Netherlands, speaking on behalf of GroupB, thanked the International Bureau for the wealth of documentation produced on the subject and the comprehensiveness in the replies to queries raised by a number of delegations. The Delegation said that, according to the information made available to it, the purchase price of 13.5million Swiss francs for the Steiner lot seemed to be the best price for WIPO, which was also more advantageous than the price for the Procter & Gamble Building. The Delegation reported that, after careful considerations, GroupB was ready to join in a consensus on the proposals made in paragraph8 of document WO/BC/19/3WO/PC/9/3, authorizing WIPO to purchase the Steiner lot, and GroupB would be pleased to join the subsequent consultations with other Groups and the International Bureau about the next stages to be taken.
11.The Delegation of South Africa, speaking on behalf of the African Group, wished to congratulate the Secretariat for the excellent documents prepared, which clarified most of the concerns raised during the previous session of the two Committees. The African Group had always supported a longterm solution to the question of premises for WIPO and it supported the proposals contained in document WO/BC/19/3WO/PC/9/3, to authorize WIPO to purchase the Steiner lot, which, in its opinion, was the best option. The Delegation noted the need for the African Group to be involved in the consultations regarding construction on the Steiner lot and the possibility of getting information in time to enable consultations with their capitals as the Missions did not have the expertise to analyze some of the technical details involved in construction.
12.The Delegation of Jamaica, speaking on behalf of the Group of Latin American countries (GRULAC), recalled the decision adopted by the two Committees in March 1998, which requested the Director General to explore with the owners of the Steiner lot and the Procter & Gamble Building the best price at which each might be acquired by WIPO and to report those prices to the June meeting of the two Committees. GRULAC congratulated the Director General and his staff on the preparation of the various documents, especially document WO/BC/19/4-WO/PC/9/4, that provided a summary of the relevant premises-related issues. The Group appreciated the efforts made by the Director General to provide responses to the questions raised by some delegations and noted that these questions appeared to have been responded to in a satisfactory manner. It looked forward to any further clarifications that might emerge from the discussions and hoped that delegations would be able to take a decision on the issue. At the March meeting of the two Committees, GRULAC had indicated its support for the most cost-effective solution to the question of premises. Information regarding such a solution had been provided, and warranted the support of the Group. GRULAC therefore endorsed the proposal contained in paragraph8 of document WO/BC/19/3-WO/PC/3 concerning the purchase of the Steiner lot. GRULAC was for the most part able to support the proposed follow-up process set out in paragraph 9 of that document. On a related matter, the Group considered it would be useful to have a document indicating the costs of the various studies and the fees for consultants on premises that had been incurred by the Organization, as from March1996.
13.The Delegation of Croatia, speaking on behalf of the Central European and Baltic States, noted that those States had always been in favor of the solution to the problem of premises that best met the needs of WIPO, especially with respect to future expansion, and that also met the financial conditions. Accordingly, they supported the proposal from the Director General to purchase the Steiner lot at the price of 13.5million francs.
14.The Delegation of China thanked the Secretariat for the very valuable working documents which had been provided to the two Committees in a timely fashion. The Delegation recalled that the member States had met nine times to discuss the WIPO premises issue. If it was previously the case that member States were not able to reach a consensus on the ways and means to address the needs of the International Bureau for additional premises, due to deficiencies in the initial investigation on the matter, then the detailed information resulting from the comprehensive and serious investigations carried out subsequently by the International Bureau, in response to the requests of member States, were of great help in gaining a better understanding of the present situation and future demands of the Organization for work spaces. In the March Session of the twoCommittees this year, most member States agreed that, on the basis of the facts and analysis of the research carried out by the Secretariat, renting proved to be an undesirable alternative. The Secretariat had informed the present session of the twoCommittees of the negotiations with both the Steiner company and the Procter & Gamble company for their final offers, the result of which shows that the purchase of the Steiner lot by the Organization is the best option. The Delegation reiterated that the Organization had convened many meetings on the issue of premises, and the questions to be clarified and discussed were now resolved. The Delegation was of the view that one should not discuss matters of detail indefinitely because that might well make the problem even more complex. The Delegation emphasized that it was high time to make a decision. In this respect, the Delegation of China reaffirmed its support for the purchase of the Steiner lot and the construction of a building on it by WIPO, and recommended that this project start as soon as possible.
15.The Delegation of the Russian Federation recalled that the Group of Central Asian and Eastern European Countries had always supported the idea for the acquisition of the Steiner lot, and this was equally true for the Delegation itself. It associated itself with the proposal made by the Delegation of China that the two Committees should not plunge into indepth discussion on this issue that has a long history. The Delegation of the Russian Federation endorsed the work that had previously been done by Mr.A. Sugden and recalled that, subsequently, some countries had insisted that yet another study be carried out in order to define other possibilities. The Delegation was of the opinion that this was a unique and advantageous situation, since the Steiner lot is located in the immediate proximity of the WIPO Headquarters Building, and can therefore satisfy the requirements and needs of the Organization. The Delegation emphasized that the meeting was taking a decision on the building for an Organization which was serving the interests of its member States. The member States had recently supported many important initiatives including automation, computerization and the upgrading of technical cooperation, as well as adopting the Program and Budget of the Organization. In order to implement these important tasks, WIPO has to expand its working space. Should the two Committees choose to postpone the decision, the delay would be counter-productive. The Secretariat had carried out extensive work and proposed, in the opinion of the Delegation, an optimum solution. The Delegation concluded by highlighting that, in the past, the current conference facilities at WIPO Headquarters had proven to be inadequate and the present proposal would now offer the opportunity to solve this problem by also providing a suitable conference facility.
16.The Delegation of Bangladesh, speaking on behalf of the Asian Group, recalled the decision taken by the two Committees in March 1998, that authorized the Director General to explore with the owners of the Steiner lot and P&G Building the best price at which this building could be acquired by WIPO and to report those prices to a joint session of the two Committees. The Delegation expressed the Group’s appreciation of the transparency that the Director General had brought to that task and noted the contents of documentWO/BC/19/3 - WO/PC/9/3. The Group considered that the price of 13.5million Swiss francs offered by the Steiner firm was reasonable, and fell within the range of valuations, of between 9.9million Swiss francs and 16.5million Swiss francs, made by the Secretariat’s two main banks, the Swiss Bank Corporation and Crédit Suisse. The acquisition of the Steiner lot, therefore, appeared to be the most feasible option. The Delegation of Bangladesh stated that, while the Asian Group recognized the need for additional working places for the Organization and to construct additional premises, some members of the Group were of the view that certain questions remained to be answered before considering the proposal made by the Director General. Accordingly, the Group requested a short break in the proceedings to enable it to meet, with a view to reaching a consensus on the issue.
17.The Delegation of Côte d’Ivoire stated that the proposal of the Director General to acquire the Steiner lot constituted the best solution, not only because the price of 13.5million Swiss francs was reasonable, but also because it was an appropriate solution. The Delegation thus reaffirmed its support for the acquisition of the Steiner lot.